Corn futures are called 4 to 5 cents lower. Overnight trade at 6:45 am CT was 4 1/4 to 4 1/2 cents lower. Outside markets are expected to weigh on commodities. Concern about the European banking system is supporting the dollar index, which is bearish for U.S. commodities. Losses could be limited by continued hot and dry weather forecasts for Argentina and southern Brazil. Corn crop production estimates for Argentina are being lowered due to crop stress.
Soybean futures are called 9 to 10 cents lower. Overnight trade at 6:45 am CT was 9 to 9 3/4 cents lower. Technical selling and outside market pressure is weighing on the market. Strength in the dollar index and weakness in Dow Jones futures and crude oil futures are bearish for commodities. Further weakness is expected to be limited by forecasts calling for more hot and dry weather in Argentina and southern Brazil that indicates further crop stress to the soybean crops.
Wheat futures are called 4 to 6 cents lower. Overnight trade at 6:45 am CT was 5 3/4 to 6 cents lower at the CBOT, 4 1/2 to 4 3/4 cents lower at the KCBT and 4 cents lower at the MGE. Strength in the dollar index and technical selling are weighing on the market overnight. Sluggish export demand and ample supplies of wheat globally remain underlying bearish factors. Hard red winter wheat conditions ratings improved in Kansas to 53% good to excellent from 47% at the end of November, although warm and dry weather is currently depleting soil moisture levels.
Cattle futures are called steady to mixed as traders wait for the cash market to develop for direction. Sluggish beef demand and flat boxed beef prices are keeping packer margins poor. But packers are short on cattle supplies and may need to hold cash bids steady to fill slaughter needs next week. Weakness in the Dow Jones futures and strength in the dollar index overnight will be a bearish factor for cattle futures.
Lean hog futures are called steady to mixed. Cash markets are expected to be steady to firm, but the 90 cent drop in pork cutouts and rising slaughter weights will limit buying interest. Average Iowa slaughter weights last week were up 2.2 pounds from the previous week and 3.2 pounds above year ago.
Cotton futures are trading lower this morning. Light profit-taking is weighing on futures after gains the previous two sessions. Outside markets are bearish on concern about the European banking system. At 6:35 am CT, March cotton is 26 points lower at 95.66 cents.